ESMA_QA_1160
01/10/2016
Subject Matter
KIID Collateral management
Original question
According to paragraph 43(g), where there is title transfer, the collateral received should be held by the depositary of the UCITS. Where there is title transfer and where the provider is also the depositary of the UCITS, should the collateral be held by the depositary of the UCITS?
ESMA Answer
01-10-2016
Original language
[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 6L]
Yes. However, the depositary should have functionally and hierarchically separated the performance of its depositary tasks from its activity of collateral provider vis-à-vis the UCITS in order to address potential conflicts of interest.
Status: Answer Published
Additional Information
Level 1 Regulation
Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
Topic
Depositaries